Bahrain © Copyright Lex Mundi Ltd.

2010

LABOR AND EMPLOYMENT DESK BOOK

BAHRAIN
Hassan Radhi & Associates

CONTACT INFORMATION
Hassan Ali Radhi
Hassan Radhi & Associates
+973 17535252
radhilaw@batelco.com.bh

1. Do you have a plant closing law in your jurisdiction and if so, what does it require?
(For U.S. jurisdictions, please answer: Is there a Baby WARN Act in your state and if so,
what does it require?)

Not Applicable

2. Are there special rules on releases/waivers in your jurisdiction?

Not Applicable

3. What are the equal employment opportunity/ non-discrimination categories in your

jurisdiction (For U.S. jurisdictions, please answer: Are there protected categories
beyond Title VII in your state?)

With regard to the equal employment opportunity / non discrimination, the Labour Law for
the Private Sector 1976 in Bahrain states as follows:

Every employer shall afford priority of employment to citizens; thereafter to other Arab
nationals whenever both are available and possess the capacity and competence as required by
the nature of employment.

Further, whenever a labor force is surplus to requirements, employers shall release non-Arab
nationals before Arab nationals and citizens, and shall release Arab national before citizens
Bahrain © Copyright Lex Mundi Ltd. 2010

provided always that citizens or Arab nationals possess the competence required for
employment.

As regards non discrimination the following would be applicable as per the Labor Law for
Private Sector 1976

No employer is permitted to terminate the service of a female worker on the grounds of her
marriage or during her leave due to pregnancy and confinement.

The Minister for Labor and Social Affairs shall make an Order prescribing prescribing
occupations and jobs in respect of which an employer may offer alternative employment to
female worker because of her marriage.

4. What are the minimum wage and overtime rules (and exemptions) in your jurisdiction?

As per the Labor Law for Private Sector, 1976, in Bahrain, there is no minimum wages
applicable in Bahrain.

With regard to overtime, a worker may be employed for extra hours if this is required for in
the interest of business, provided that the basic and extra hours or work shall not exceed sixty
hours per week unless the Ministry of Labor and Social Affairs shall have granted permission
for a long period. Payment for each extra hour equivalent to hours wages entitlement
increased by a minimum of twenty five percent thereof for hours worked during the day, and
by a minimum of fifty percent thereof for hours worked during the night which shall be
deemed to being from seven o'clock in the evening until seven o'clock in the morning.

When conditions of work require the worker to work on any official holidays, he shall be paid
150% of his normal wage or, he shall be granted another day in lieu thereof.

5. Is there employment-at-will, or some other rule, in your jurisdiction? What are the
exceptions?

No

6. What are the legal obligations upon terminating an employee in your jurisdiction?

Upon termination, all employees are entitled to receive contractual payments.

Upon termination of a non Bahrain employee by the employer, the concerned employer shall
pay leaving indemnity payment for the period of his employment calculated on the basis of
fifteen days’ wages for each year of the first three years of service and one month’s wages for
each year of service thereafter. Such worker shall be entitled for payment of leaving
indemnity upon quantum meruit in proportion to the period of his service completed within a
year.
Bahrain © Copyright Lex Mundi Ltd. 2010

Upon termination of a contract of employment by an employee, the concerned employee shall

be entitled to the payment of one third of the leaving indemnity if the period of his service is
not less than three consecutive years and not more than five years and he shall be entitled to
payment of the full leaving indemnity if he resigns after the completion of five years of
service.

An employee shall be entitled for annual leave and if the employee terminates the contract of
employment, he shall receive a cash consideration equivalent to his wages for the days of
annual leave due to him.

7. Are there any family and/or medical leave laws in your jurisdiction, and if so, what do
they require? (For U.S. jurisdictions, please answer: Are there family and/or medical
leave laws in your state beyond FMLA and if so, what do they require?)

An employee who has satisfactorily completed the probationary period shall have the right, in
case of sickness certified by a doctor nominated by the employer or the responsible doctor at
any Government Medical Institution, to be granted the following sick leaves during the year:

a) fifteen days on full pay;

b) fifteen days on half pay; and
c) fifteen days without pay

In case of a disagreement as to the limitation of the duration of the medical treatment, a

certificate signed by the responsible doctor at any Government Medical Institution shall be
valid in this respect.

The entitlement of a worker to sick leaves on full or partial pay may be accumulated for a
period not exceeding 182 days.

Apart from the above an employee is entitled to leave on full pay under the following
circumstances:

a) Three days in the event of his marriage.

b) Three days in the event of the death of his/her spouse or any of his/her relatives to the
fourth degree of relationship.
c) Three days in the case of the death of his/her spouse’s relatives to the first degree of
relationship and one day to the fourth degree of relationship.
d) One day in case of birth of a child for him.

8. Please list any miscellaneous, interesting or oddball laws in your jurisdiction, and state
under what circumstances they pertain.
Bahrain © Copyright Lex Mundi Ltd. 2010

For an unfair dismissal proved in a Bahrain Court, the relief given is limited to only
compensation being awarded by the Court. Reinstatement in the job is not possible unless the
dismissal was due to the employee’s labour union activity.

9. Does your jurisdiction have a law requiring employers to give employees access to, or a
copy of, their personnel records?

None

10. Does your jurisdiction outlaw or restrict drug tests, alcohol tests, genetic tests or any
other kind of testing?

None

11. Does your jurisdiction have any special rules on the payment of sales commissions?

None

12. What are the basic rules on enforcing non-competes and related agreements in your
jurisdiction?

A non competes and related agreements are accepted provided that there are no arbitrary or
unreasonable provisions in the agreements.